Cnooc Limited Class A · SSE:600938
Cnooc Limited Class A — Merger or Acquisition (January 2006)
14 slides from Cnooc Limited Class A's merger presentation, Jan 9, 2006
Slide 1: Acquisition of Stake in Offshore Nigeria, OML 130
CNOOC Limited Acquisition of Stake in Offshore Nigeria Oil Mining License 130(“OML 130”) January,2006
Slide 2: Important Notice
Important Notice This presentation contains statements about expected future events and financial results that are forward-looking and subject to risks and uncertainties. For those statements, we claim the protection of the safe harbor for forward-looking statements contained in the Private Securiti
Slide 3: Transaction Highlights
Transaction Highlights CNOOC Limited (“CNOOC”) to acquire a 45% working interest in OML 130 offshore Nigeria from South Atlantic Petroleum Limited (“SAPETRO”), through its indirect wholly owned subsidiary - CNOOC Exploration and Production Ltd. Total consideration of US$2.268 billion, subject to
Slide 4: CNOOC to Acquire a 45% Working Interest
CNOOC to Acquire a 45% Working Interest OML 130 is covered by both a Production Sharing Agreement (“PSA”) and a Production Sharing Contract (“PSC”), each of which governs a 50% interest in OML 130 PSA is between Total, Petrobras and SAPETRO PSC is between NNPC, Total and SAPETRO, and under PSC
Slide 5: Why is OML 130 a Unique Opportunity?
Why is OML 130 a Unique Opportunity? OML 130 is a one-of-a-kind asset, the type which comes to market infrequently World-class asset with significant exploration and development upside Operated by one of the most successful deep-water operators, Total Strong local partner, SAPETRO Highly a
Slide 6: A World Class Asset...
A World Class Asset... Located in Niger Delta One of the world’s most important hydrocarbon basins Covers an area of 500 square miles and lies in water depths which range from 1,100m to 1,800m OML 130 is comprised of 4 world- class discoveries: Akpo, Egina, Egina South and Preowei OML 130
Slide 7: A World Class Asset... Major Nigerian Deep-water Projects
A World Class Asset... A series of large fields discovered in this region, including Bonga & Aparo, Erha & Bosi, Agbami & Ekoli, Akpo of OML 130, and Usan & Ukot Major Nigerian Deep-water Projects Liquid Technical Field License Oil/Gas Reserves First Oil Operator (mmbbls) Bonga & Aparo OML 118 Oil
Slide 8: A World Class Asset... OML 130 discoveries
A World Class Asset... OML 130 is comprised of world-class discoveries: Akpo, Egina, Egina South and Preowei Akpo’s P50 liquid recoverable volumes estimated by Total at approximately 600 mmbbls Additional P50 Upside in excess of 500 mmbbls in the area covered by OML 130 Akpo expected to come
Slide 9: A World Class Asset... Akpo development
A World Class Asset... Total launched Akpo development in 2005 Based on 5 exploration/appraisal wells Planned 44 producing wells on 5 reservoirs FPSO-based production with capacity of 175 kbd of condensate 2 mmbbl storage capacity (offloading every 5 days)
Slide 10: ...With Significant Upside Potential
...With Significant Upside Potential Development upside Exploration upside High success rate of exploration A range of exploration prospects and leads with huge resource potential
Slide 11: An Ideal Strategic Fit
An Ideal Strategic Fit Selectively pursue acquisitions to ensure a) long-term reserve and production growth b) geographical risk diversification Maintain operational efficiency by teaming up with one of the most successful deep-water operators Maintain financial flexibility through conservativ
Slide 12: Highly Attractive Valuation: Transaction Value Multiples
Highly Attractive Valuation •Consideration paid for OML 130 implies a multiple of US$4.6/boe on P50 recoverable volumes •A sample of recent transaction multiples calculated on 2P reserves shows an average multiple equal to US$15.4/boe 35.0 $29.3 Transaction Value Multiples ($/boe) 30.0 25.0 20.0 $16
Slide 13: Closing Remarks
Closing Remarks Unique, world-class asset Ideal fit with CNOOC's strategic objectives Highly attractive valuation
Slide 14: CC a:
CC a: